Is cybersquatting a form of unfair competition?
Yes, cybersquatting is a form of unfair competition. In South Dakota, unfair competition is defined as any act in which one person takes advantage of another to gain an economic or competitive advantage. This includes using someone else’s trademarked name, deceiving customers by way of false advertising, and using another’s copyrighted material without permission. It also includes cybersquatting, which is the act of registering, trafficking, or using a domain name that is the same or similar to a trademarked name or phrase, in bad faith. For example, if someone registered www.applecomputers.com, which is a name similar to the trademarked name of a well-known computer manufacturer, and then redirected customers from that site to one of their own, this would be an act of cybersquatting and an example of unfair competition. The main purpose of cybersquatting is to generate revenue through advertisements, or to disrupt the business of the trademarked holder. Much like any other form of unfair competition, South Dakota’s law prohibits cybersquatting. Any person injured by this type of activity may file a lawsuit to recover damages, including any profits resulting from the cybersquatting, reasonable attorneys’ fees, and court costs. In addition, the court can order an injunction to prevent any further cybersquatting activity.
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